A compound journal entry is:
A) A journal entry that has three or more debits and three or more credits.
B) A journal entry that affects at least three accounts.
C) A journal entry that affects at least four accounts.
D) A journal entry involving at least two accounting periods.
E) A journal entry involving only two ledger accounts.

Question

Quizplus · Accepted Answer

A compound journal entry is a journal entry that affects at least three accounts. It may have multiple debits and credits, but there is no specific requirement for a certain number of debits or credits. Therefore, option A and C are incorrect. Option D and E are also incorrect as they refer to other types of journal entries.

A Compound Journal Entry Is